A new study from the Economic and Social Research Institute (ESRI) has revealed that retrofitting Ireland’s entire private rental housing stock could come with a staggering €8 billion price tag – an expense many landlords simply cannot afford.
The comprehensive research highlights the “complex challenges” facing Ireland’s rental sector as it attempts to meet climate goals through energy efficiency upgrades. According to the findings, nearly half of all landlords would be unable to finance even a €25,000 investment in their rental properties.
“The financial barriers are significant,” said Dr. Aoife Hallissey, lead researcher on the ESRI study. “Many landlords, particularly those with just one or two properties, don’t have access to the capital needed for comprehensive energy retrofits.”
The study examined the financial capacity of Ireland’s landlords alongside the estimated costs for bringing rental properties up to modern energy efficiency standards. While government grants exist to support retrofitting, the research indicates these programs may need substantial expansion to bridge the financial gap.
According to The Irish Examiner, housing experts warn that without additional support, the costs might ultimately be passed on to tenants through rent increases, potentially worsening Ireland’s already challenging rental affordability crisis.
The Department of Housing has acknowledged the findings and indicated it is reviewing potential solutions, including expanded grant schemes specifically targeting the rental sector and potential tax incentives for landlords who invest in energy improvements.
Energy retrofitting typically includes measures such as improved insulation, replacement windows, heating system upgrades, and renewable energy installations – improvements that benefit both climate goals and tenants’ energy bills, but require significant upfront investment.